‘No Special Treatment For MRS, All Marketers Buy Petrol On Equal Terms’, Dangote Clarifies

Dangote Refinery Plc has dismissed claims that its pricing structure favours MRS Oil Nigeria Plc or distorts competition in the downstream petroleum market, insisting that all marketers purchase petrol on equal terms at the refinery gate.

The Managing Director of Dangote Refinery Plc, David Bird, stated this on Wednesday during a press briefing at the refinery complex in Lagos, amid concerns over reports that MRS was retailing petrol at ₦739 per litre.

Responding to questions on whether the pricing arrangement amounted to market disruption or anti-competitive conduct, Bird said the refinery neither sets pump prices nor grants preferential pricing to any marketer.

“I can’t comment on retail pricing. All I can assure you is that there is zero preferential pricing. Every truck that leaves this site purchases product at ₦699 ex-gate from the refinery’s perspective. There is no differentiation among customers,” he said.

Bird explained that Nigeria’s downstream petroleum market is fully deregulated, allowing marketers to determine their retail prices based on individual cost structures, logistics and business strategies.

“What a marketer chooses to post as a retail price is entirely up to them. It is a fully competitive market, and consumers have the freedom to decide where to buy fuel, whether based on convenience, brand loyalty or proximity,” he added.

He stressed that MRS does not enjoy any special pricing advantage, noting that decisions around direct lifting and distribution were purely commercial and driven largely by product quality and regulatory compliance.

“One thing I would add is the importance of understanding the source of the product consumers are buying. We have a very strong regulator that enforces fuel quality, and consumers should be assured that fuel sold at any station meets the same quality standards,” Bird said.

Addressing domestic supply capacity, Bird said the refinery is currently producing about 50 million litres of fuel daily and is capable of meeting Nigeria’s demand, despite recent volatility caused by pricing adjustments and currency devaluation.

“There has been a lot of speculation about Nigeria’s true fuel demand. I’m not going to speculate on that. Demand has been disrupted by pricing changes and currency devaluation, leading at times to volatility and even demand destruction,” he said.

However, Bird expressed confidence that improved price stability and the availability of affordable, high-quality fuel would support a rebound in consumption.

“Looking ahead, abundant, cheap, high-quality fuel will bring stability, and that stability should allow demand growth to resume. We are well positioned to meet any potential growth in demand over the next three years, and after expansion, our capacity will more than meet that demand,” he added.

Bird also dismissed speculation about operational challenges at the refinery, assuring stakeholders that production has remained stable.

“We have consistently delivered 50 million litres per day, and whenever offtake requires it, marketers have been able to lift those volumes,” he added.